International Finance Paper
International Finance Paper Many companies today have decided to take their business into the international marketplace. Costco is a company that has successfully entered the international marketplace with warehouses in several countries around the world. When Costco opened warehouses international it had to take into consideration Global banking and the risk it would have with the different exchange rates. Another issue that also had to be taken into consideration would be the different regulations that each country brings with it. Team B has taken a look at all issues and will show how they affect Costco.
Global Investment Banking Process
Costco opened their first store in 1976 in San Diego, California and became incorporated in 1983 after merging with The Price Company. Today the organization operates 557 warehouses which includes 406 of these warehouses in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan and another 31 warehouses in Mexico (Costco Wholesale, 2009).
Costco is a dominant club operator in many countries and have locations not only in the United States but they operate in nine Canadian Provinces, Puerto Rico, Mexico, United Kingdom, Japan, Korea, Taiwan and in the near future Australia. The Taiwan locations are through a 55%-owned subsidiary and the Japan and Mexico locations are through a 50%-owned joint venture (Costco Wholesale, 2009).
Costco was able to begin offering stock to the public on December 5, 1985 and opens the first Canadian warehouse in Burnaby, British Columbia. By 1992 Costco opened a warehouse in Mexico City, 1993 a warehouse opening in the United Kingdom in West Thurrock, Essex, England, 1994 Asia followed with a warehouse in Seoul, Korea. The first warehouse in Taiwan, in Kaohsiung in 1997, and a Japan warehouse in Hisayama in 1999. The company’s most recent store opening in the foreign market was on July 7, 2009 in Sin Masato, Japan (Costco
Global Investment Banking Process
Costco opened their first store in 1976 in San Diego, California and became incorporated in 1983 after merging with The Price Company. Today the organization operates 557 warehouses which includes 406 of these warehouses in the United States and Puerto Rico, 77 in Canada, 21 in the United Kingdom, seven in Korea, six in Taiwan, nine in Japan and another 31 warehouses in Mexico (Costco Wholesale, 2009).
Costco is a dominant club operator in many countries and have locations not only in the United States but they operate in nine Canadian Provinces, Puerto Rico, Mexico, United Kingdom, Japan, Korea, Taiwan and in the near future Australia. The Taiwan locations are through a 55%-owned subsidiary and the Japan and Mexico locations are through a 50%-owned joint venture (Costco Wholesale, 2009).
Costco was able to begin offering stock to the public on December 5, 1985 and opens the first Canadian warehouse in Burnaby, British Columbia. By 1992 Costco opened a warehouse in Mexico City, 1993 a warehouse opening in the United Kingdom in West Thurrock, Essex, England, 1994 Asia followed with a warehouse in Seoul, Korea. The first warehouse in Taiwan, in Kaohsiung in 1997, and a Japan warehouse in Hisayama in 1999. The company’s most recent store opening in the foreign market was on July 7, 2009 in Sin Masato, Japan (Costco
References: Costco Wholesale (2009). Annual Report 2008 Retrieved August 22, 2008, from http://media.corporate-ir.net/media_files/irol/83/83830/2008_AR_Cost.pdf Costco Wholesale (2009). Historical Highlights Retrieved August 22, 2008, from http://media.corporate-ir.net/media_files/irol/83/83830/H_highlights2.pdf International Federation of Accountants. (n.d.). Retrieved on August 22, 2009 from http://www.ifac.org/faq.php International Finance in the period of Globalization. 2008. Retrieved August 20, 2009, from www.uiowa.edu/ifdebook/issues/globalization/readingtable/international.shtm United States Department of the Treasury (n.d.). Office of International Affairs. Retrieved August 22, 2009 from http://www.ustreas.gov/offices/international-affairs/standards/fin-agencies.shtml